Personal loan comparison
An unsecured personal loan can help you cover significant expenses, pay for an emergency, or consolidate your debt. You can use the funds for almost any purpose. One of the main features of such services is that you don't have to report on how the money was spent. On the contrary, online lending services are extremely scrupulous about confidential information, so you don't need to prepare a bunch of documents to confirm that you have achieved the goals for which you borrowed the money.
Another important feature of online lending services is the fact that they all offer absolutely unique offers to their customers. Unlike banking institutions, which are guided solely by corporate policies that almost do not differ from bank to bank, online fast loan services offer truly unique offers to each of their clients. But what determines the loan terms that will be offered to you?
Factors affecting the interest rates of loans for individuals
Lenders set interest rates primarily based on the cost of funds and an assessment of the credit risk of borrowers. Here are some of the key factors that can affect your loan interest rates:
- Credit score
Credit score is a characteristic that is formed during the time you use credit funds. For example, a person who is just starting to use credit obligations as a financial instrument may have a zero rating. With each new loan, this rating will increase, while the emergence of debt obligations or penalties will reduce it. Traditional banks decide whether to grant you a loan based on your credit score. In the case of online services, the company decides on what terms to provide you with a loan based on your credit score
Your income is an indicator of your ability to pay. When you apply to a bank for a loan, the second question is usually the type of employment you have and your average earnings. The bank assesses your ability to pay based on these data and makes a decision on whether to grant or deny a loan based on this information. However, how does this indicator affect the terms of online lending? In fact, it doesn't, because online lending services don't require income statements and don't ask you to provide your income. All such a company needs is for you to prove your identity and sign a contract. Since payday loan companies provide unsecured loans, the only way to collect interest from you is to go to court. So, in this case, information about your income and job does not play any role.
The situation with your employer is the same as with your place of work. Traditional banks often pay attention to the company you work for and the credit image of that company, how many employee clients from that company are clients of the banking institution, and so on. As for the employer's influence on the terms of your quick online loan, this influence is zero. Thus, online lending services do not care what position you hold or what your company is called, which greatly simplifies the procedure for interacting with such services.
These aspects have a significant or partial impact on your relationship with the bank and whether you will be granted a loan. At the same time, online lending services are much more loyal to their customers, so the only thing they are interested in is your credit history and rating. Having figured out what factors affect the terms of your loan, it's time to move on to what categories you should use to compare services from different companies. We will discuss these categories below.
How to compare offers of online lending services
Given the popularity of online lending and the fact that there are hundreds, if not thousands, of microloan services on the market, this is not surprising. In the modern world, not only does demand create supply, but the more lending institutions there are, the more potential customers there are. Thus, online lending services are firmly rooted in our lives and are unlikely to give way to classic banks.
As we mentioned earlier, all online lending services offer unique microloan terms to their customers. Earlier, we have already reviewed the aspects that a service takes into account when formulating a particular personalized offer. However, how exactly should these offers be compared? In order to choose which offer will be most beneficial for you, you should pay attention to
- The amount of money offered
- The term for which the company is willing to give you a loan
- The interest rate
These characteristics can help you understand whether the loan you choose is profitable or not. However, do you really need to spend a lot of time on calculations just to compare different personal loans from companies? Of course not. In order to decide which loan will be the most beneficial for you, you should use an online loan calculator.
An online loan calculator is a tool that allows you to estimate the total amount of the loan you'll have to repay in a few clicks, as well as various other aspects of online lending. Thus, by using an online loan calculator, you can compare the loan terms offered by different companies and choose the most favorable offer.
Do you need a quick loan?
The first loan is possible from 500 to 50000. Lenders offer different repayment periods with a discount on the loan commission, more information on the home page of each lender.